Question
Consider the convertible bond issued by ABC Inc: Par value = $1000 Coupon = 8.5% Market price of convertible bond = $900 Conversion Ratio =
Consider the convertible bond issued by ABC Inc: Par value = $1000 Coupon = 8.5% Market price of convertible bond = $900 Conversion Ratio = 30 Estimated straight value of bond = $700 Stock price = $25 What will be the approximate return realized from investing in the convertible bond, if the investor had purchased the convertible for $900?
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Principles Of Corporate Finance
Authors: Lawrence J. Gitman, Sean M. Hennessey
2nd Canadian Edition
0321452933, 978-0321452931
